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Location-based service revenues in Europe to reach EURO 420 million by 2015, says report

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According to a new research report from Berg Insight, mobile location-based service revenues in Europe are forecasted to grow from € 220 million in 2009 at a compound annual growth rate (CAGR) of 12 percent to reach € 420 million in 2015. Local search, navigation services and social networking are believed to become the top applications in terms of number of users. Berg Insight estimates that one third of all mobile subscribers in Europe will use some kind of location-enhanced application on a regular basis by 2015. The social networking category is forecasted to experience the highest growth in the coming years.

"Location-based services are finally on the verge of mainstream acceptance. Increasing sales of smartphones are driving end-user awareness of mobile Internet services and applications in general. On-device application stores enable access to mobile services for a broader audience at the same time as flat-rate data plans make pricing more transparent. More and more developers are now adding location support in their applications to enhance the user experience", said André Malm, Senior Analyst, Berg Insight. He adds that integration of GPS in handsets is an important driver. "The installed base of GPS handsets in Europe has recently surpassed 15 percent of total handsets and will increase to 50 percent three years from now."

The revenue model for many mobile applications in the consumer segment is shifting from premium fees to ad-funding. This is especially the case for location-based services where now also navigation services are becoming free for end-users and developers monetise their offerings through ads and various bundles. However, revenues may not grow at the same rate as usage because the mobile advertising ecosystem is still nascent. It will take some years before a successful model has been established that allows advertisers to reach out to a critical mass of active users, and this is especially the case for emerging location-based advertising, concludes Berg.

Turkcell launches location-based micro blogging platform

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Turkcell, a communications and technology company in Turkey, announced today that it has developed one of the world's first location-based Web 2.0  micro-blogging platforms. "Gezenzi", which roughly translates as "share traces of your life", launches today and is a permission-based service which enables members to use a Gezenzi map to exchange information about places they encounter in their daily lives and travels.

On a Gezenzi map, users share location information by keying in text, comments and even multi-media content (including images and – shortly – audio and video files).  This information could be about restaurants, travel, beaches, the weather, sports,  recommendations, etc, in any particular place in the world. Users can micro-blog information via SMS/MMS, mobile phones or the Web and can track the latest movements and comments of other Gezenzi subscribers. Blog entries on Gezenzi will appear based on specific locations rather than on when they were posted.

Cenk Bayrakdar, Turkcell's Chief Product and Service Management Officer, noted that: "Turkcell is delighted to be launching this innovative new service.  We have no doubt that it will be very well-received and become a much-used application for micro-bloggers both here in Turkey and on their travels worldwide. We would encourage people to visit the Gezenzi website and find out more. With around a dozen mobile services applications as of March 31st 2010, Turkcell continues to lead the way in the development of Turkish mobile technology. I would like to thank my Turkcell colleagues for their continued innovative thinking and cutting-edge work.''

By the end of 2010, Gezenzi is expected to also be available to users in English through some Turkcell subsidiaries such as life:) in Ukraine.

Mobile VoIP – the operator opportunity

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3’s Skype users generate more non-VoIP minutes, and churn less

Stats released yesterday from Juniper Research claimed that there could be 100 million mobile VoIP users by 2012, with mobile voice over WiFi usage perhaps draining $5 billion from operator voice revenues by 2015.

 

Juniper’s report author Anthony Cox said that “several more traditional operators” will have partnered with VoIP providers by 2012, leading to a significant uptake of mobile VoIP services.

But what lies behind such partnerships? Are operators beginning to see the value of mobile VoIP, or are they being forced to the table by the increasing “over the top” uptake of Skye and other VoIP services?

Here are some written Q&As we had with Juniper’s Anthony Cox. After that, we’ve got the views of Skype’s Russ Shaw, and Karl Good of Truphone as well.

Q (Keith Dyer):
What I’m interested in is whether you think mobile VoIP represents an overall opportunity for operators, or will inevitably threaten revenues?

A (Anthony Cox):
In the very long term, mobile operators will be using mobile VoIP to carry their traffic themselves, but that is a long way off. In the mean time, they have the possibility to form partnerships (Skype says it is working on several in addition to the two it has already). These partnerships would typically be a hybrid between voice over IP and circuit switched.

Mobile VoIP, via a downloaded application for example, is threat to traditional operators, but the extent to which it will undermine them in the medium term has probably been overstated. The pressure on voice margins through intense competition as mobile subscriber rates reach 100% is more of a problem.

Q:
You mention a $5 billion drop due to traffic being routed over WiFi but what is the upside of operator partnerships with VoIP providers, such as 3’s with Skype? Are there indications that operators see an upside, either in data tariffs, or customer retention, to mobile VoIP?

A:
First off, it could be a lot more than $5 billion, incidentally. 3UK’s partnership with Skype was initially designed to attract customers. Counter intuitively, 3 says that it has actually increased margins, by increasing voice revenue and bringing down churn. Three claims the following:

• Skype users churn less (14 percent) than non-users
• Mobile Skype users generate nearly 60 percent more voice revenue than non skype -users
• Skype users have a “margin uplift” of more than 20%
• Skype users are more likely to subscribe to a data add-on than non Skype users

Q:
And if operators do look to partner, what would be their strategy in doing so. Would operators look to tier VoIP QoS?

A:
Good question, probably not yet. It’s worth noting that voice over 3G networks is technically quite difficult. Latency and variable signal quality is the problem.

So how do things look from the VoIP service provider side of the fence?
Russ Shaw, GM of Mobile, EMEA for Skype said that operators are changing the way they think of VoIP.
“We are seeing evidence that many mobile operators around the globe have started to rethink their strategies towards innovative applications on their networks, including mobile VOIP. We already have solid partnerships with Hutchison 3 in the UK and Verizon Wireless in the US who are offering Skype to their customers.”

Shaw’s numbers from 3 roughly mirrored Cox’s figures. He said that figures from Hutchison 3 are showing that continuous Skype users among the customers of Hutchison 3 churn less and consume 17% more non-Skype voice minutes (3 Customer Survey, Aug. 2009).

“We strongly believe that there is no alternative for mobile operators on the road to customer loyalty than embracing innovation and forging alliances with mobile innovators like Skype,” he added.

Karl Good, Director of Applications at Truphone, said that good quality VoIP solutions allied to increased network demands were driving oeprtaors’ interest in VoIP solution.

“VoIP has continued to mature and today there are many good quality mobile solutions can offer an as good as or in some instances better than experience than a traditional circuit switched call.,” Good said.
“There are also practical reasons to look at VoIP as a complimentary solution to offer voice to operator customers – such as offering connectivity over IP networks where operators perhaps cannot effectively or affordably offer cell coverage in rural areas.
“Operators naturally are looking at ways of reducing traffic and traffic transit cost, VoIP again naturally fits here as a complimentary channel that can be used to backhaul traditional circuit switched voice traffic over an IP backbone, where operational costs are significantly lower than that of traditional cell network infrastructure.”

 

Microsoft takes barcode Tag out of Beta

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Microsoft said yesterday in a blog post that its bar code system -Tag – is now available for general use.

The post said that in its 18 months beta period more than a billion Tag codes have been printed, and 20 million magazines have carried the Micosoft Tag.

What they didn’t say is how many phone users have so far downloaded the reader onto their phones, which is obviously a critical aspect of the success or otherwise of the service. It might be that Microsoft may not be the obvious touch point for persuading mobile customers to download the reader, but in terms of its brand reach, it clearly has decent muscle in terms of putting a campaign together.

Although the Tag site says Tag can be used all over the world, users can receive an SMS with a link in it if they are in The Netherlands, Italy, Turkey and the UK, as well as Canada and the US. The inclusion of Turkey is relevant, because Windows Live! has very high penetration in that market, giving Microsoft a broad channel to market.

So, the launch is evidence of another big player putting its weight behind mobile barcodes – and what those in the sector need is visibility and results, which Tag may help to deliver.

fring gives Android users the first mobile video calls

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fring, the mobile over internet communication service, today announced the release of the world's first mobile video calls over internet on Android devices.

Android device owners now join Nokia (Symbian S60) and iPhone/iPod touch users who are already making free mobile video over Internet calls with fring.

"Our users have become accustomed to fring providing them with the latest and most advanced mobile over Internet communication. With Android users on over 50 different devices logging into fring everyday, we leveraged the open Android platform to rapidly develop the first two-way video calls over internet on Android" said Avi Shechter, fring's Co-Founder and CEO. "The demand for this feature has been overwhelming as more people discover richer ways to use their mobile phones. We continue making free mobile video calls widely available, satisfying the market's want for more rich communications tools that these smart phones were designed to deliver."

Android's market reach combined with the Android OS's openness letting developers create richer communication solutions for multiple devices, enabled fring to rapidly deliver the much demanded free video calls to millions of Android users who can now share real-life experiences, for free, over their Android device's internet connection.

Turkcell provides subscribers with instant POS applications uploading with Cellebrite’s UME-36

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CelleBrite, a provider of cell phone synchronisation and management systems, has announced that Turkcell, a communications and technology company in Turkey, has upgraded its UME-36 system with its latest feature. The UME-36's upgrade provides Turkcell the ability to better distribute applications while increasing their adoption rate by making installation immediate, simple and seamless at the point of sale. With more than 1000 exclusive sales points throughout the country, Turkcell will not only be able to offer their customers immediate cell phone content synchronisation and back up services, but also the ability to instantaneously upload their favourite applications with the UME-36.

The UME-36's upgrade identifies which apps are supported by a user's phone, eliminating the necessity for subscribers to check compatibility. Turkcell users can then choose the compatible apps they want and have them installed by CelleBrite's UME-36 with a simple press of a button. Additionally, the UME-36 upgrade provides both front end and back end components for the app uploading system, allowing Turkcell to add mobile phone apps from an easy web interface. 

CelleBrite's UME-36 is a stand-alone phone memory transfer and backup solution that transfers all forms of content, including pictures, videos, ringtones and SMS, as well as phonebook contacts data between a wide range of mobile phones, smart phones and PDAs. With the UME-36, Turkcell can ensure that their subscriber's content is protected, in addition to simplifying the process of upgrading or exchanging phones with the instantaneous transfer of content and now, mobile phone apps. Turkcell's Retail Management Division Head Mr. Sait Ayayd?n commented, "Having the ability to provide our customers with this service is a win-win. For Turkcell, this provides an excellent distribution channel for the sale and adoption of mobile phone apps, and for subscribers it enables the simplified acquisition of the apps – making them more appealing."

CelleBrite's Co-CEO, Yossi Carmil commented on the UME-36's upgrade. "CelleBrite is committed to providing tools that make it easier for retailers, carriers and subscribers to adopt and leverage the latest technology. We are pleased that Turkcell is adopting this latest upgrade as it will certainly offer them the ability to more widely distribute apps, while providing their customers with a service that differentiates them from their competition."

Rapid growth for Irish touchscreen market as smartphone share doubles

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GfK Retail and Technology's latest Irish Handset data is said to show that the smartphone revolution is beginning to arrive in the Republic of Ireland. Since the beginning of the year, the smartphone share has doubled from 8% to 16%, driven by key hero handsets.  

This trend is coupled with the more dramatic share that touchscreens now represent in the Irish Mobile Handset marketplace. In January, one in every four handsets sold was a touchscreen and this has moved up to nearly 1 in 3 handsets purchased.   The key understanding to derive from this is that the common assumption that a touchscreen phone is "smart" is not necessarily true.

Currently, 63.4% of touchscreen handsets, sold YTD April 2010, are classed as traditional mobile phones, which indicates that a large proportion of mobile users in Ireland are yet to embrace the ‘There's an App for that' culture and the ability to send emails via their phones. It is clear that consumers are embracing the more tactile way of interacting with a phone, says GfK.

GfK started tracking the Irish Mobile Phone Market in February 2010, representing a first for the country's Telecom industry. Sales information is taken directly from EPOS records provided to GfK through its retailer and operator partners to produce the definitive statistical view of the handset and mobile tariffs industry.

GfK defines smartphones as having all of the following a) Advanced Operating System b) Touch/QWERTY input c) Full Email Client

EADS Defence & Security to enable world’s first operational cross-border communication between two nationwide TETRA networks

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The world's first TETRA operational ISI standard-based cross-border communication between two national authority networks will be trialled during 2010. The network operators, Swedish Civil Contingencies Agency (MSB) and the Federal Agency for Digital Radio of Security Authorities and Organisations (BDBOS), have signed an agreement to launch a cooperative project with EADS Defence & Security to implement and trial cross-border communications. The trial will involve frontline authorities from Sweden and Germany, and is planned to take place during November and December 2010.

The operational trial will center around an exercise in international incident management, and will use TETRA for cross-border communications. The aim is to study how TETRA functionalities can improve radio communication and cooperation between two countries' authorities. It will also demonstrate the usability of TETRA communications in managing an international incident.

"This trial goes to show that authorities involved in a cross-border incident in another country can communicate with each other and with their international counterparts as securely and seamlessly as in their everyday operations in their home country," says Dr. Gabriele Knoll, Head of Directorate-General, BDBOS.

"The Rakel network brings significant security benefits to Sweden," says Stefan Kvarnerås, Head of the Rakel organization, MSB. "The trial expands these benefits. We have developed the trial and operational concepts to be able to meet the call for cross-border communications that the Council of the European Union have very high on their agenda."

"EADS Defence & Security was the first to prove in independent tests that its TETRA networks can be interconnected according to the ETSI TC­TETRA ISI standard, and this project is a direct continuation of our strategy to ensure interoperability between networks," says Dirk Borchardt, Head of Security and Communication Solutions at EADS Defence & Security. "This trial shows that modern technology can make a difference in real, demanding operations".

The trial between Sweden and Germany will study mobility management of radios, group calls, inter-network individual calls and inter-network short messages (SDS), as well as control room interoperability.

NEC provides national mobile network for M4AL

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NEC announced today that NEC Eastern Europe, a wholly owned subsidiary of NEC Europe, has been selected as the sole supplier by the new Albanian operator, MOBILE 4 AL Sh.a (M4AL) to build a nationwide mobile transport network over the next four years. NEC will provide a full turn-key solution which comprises PASOLINK NEO microwave communications system, and MN5000 Series, a multi-service node, Network Management System, as well as associated professional services.

NEC says its full range of packet/hybrid transport products, which provide communication links essential for mobile voice and data communication services, will enable M4AL to quickly launch services and deliver a better user experience for Albanian mobile users.

"We are proud to select NEC as a partner to build our network in Albania. NEC is known for its reliable and high-quality equipment and has always provided us with excellent service," said Moni Buchnik, CEO of MOBILE 4 AL.

Hiroyasu Ishii, General Manager of the Global Network Division at NEC Corporation, Tokyo said, "It is an honour to be the preferred partner of MOBILE 4 AL. This project demonstrates our ability to partner and deliver high-value transport solutions. With our best-in-class technologies, integration expertise and resources we can help operators deploy complex systems that enable the five nines of reliability with the lowest total cost of ownership."

Mobile VoIP users to exceed 100 million by 2012, finds report

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A new study from Juniper Research has found that Mobile VoIP services will develop significantly faster in developed markets due to the direct correlation between 3G roll outs and the take up of mobile VoIP. This is the case even though mVoIP traffic volumes may eventually be higher in developing markets due in part to the calling patterns of migrant workers, according to the study Mobile Voice Strategies: mVoIP Opportunities & Business Models, 2010-2015.

 

"By 2012 we expect significant uptake of mobile VoIP in its various different flavours", says Anthony Cox, Senior Analyst at Juniper Research. "By that date mobile VoIP will be available over both 3G and WiFi networks. We also anticipate that several more traditional operators will have joined 3UK and Verizon in the US and developed relationships with mobile VoIP players such as Skype," he says.

Further findings include:

  • Alliances between mobile VoIP players and traditional operators may provide the best option for today's incumbent operators to address the advent of mobile VoIP.
  • Revenues from the circuit switched voice market will continue to diminish over the next five years, although this will not accelerate.
  • A high percentage of Mobile VoIP carried over applications will be via WiFi networks, bypassing operators' networks altogether. Such traffic will result in some lost revenues, amounting to around $5bn by 2015.

The mobile voice report includes an in-depth analysis of the current state of play of the mobile Voice market considering the position of both the incumbent operator and the mobile VoIP new entrant. The report contains five year forecasts for the number of Mobile VoIP Users over 3G networks, the number of mobile VoIP users via alliances, number of mobile VoIP users via applications, number of 4G mobile VoIP users. It also contains the value of traffic associated with all of these categories.

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